Singapore: New tax reclaim service for Real Estate Investment Trusts
Clearstream Banking1 would like to inform customers that they can now send their tax reclaim applications for Singapore Real Estate Investment Trusts (REITs) directly to Clearstream Banking effective
For income tax purposes, a REIT refers to a trust that is constituted as a collective investment scheme authorised under section 286 of the Securities and Futures Act (Cap. 289) and listed on the Singapore Exchange, and that invests or proposes to invest in immovable property and immovable property-related assets.
The term “tax reclaim service” reflects the process to recover the tax amounts withheld in excess at source from the respective issuer's local tax authorities. As part of Clearstream Banking’s continuous efforts to improve its services, Clearstream Banking has arranged, together with its agent The Development Bank of Singapore Limited (DBS), for customers to be able to send their tax reclaims directly to Clearstream Banking, provided that the depository offers this service, as the availability of the tax reclaim service may vary depending on the issuer and even for the same issuer, on a per payment basis.
New service process
The following beneficial owners are eligible for the tax reclaim service on dividends from Singapore REITs available through Clearstream Banking:
- Foreign non-individuals, the applicable rate is 10%;
- Foreign individuals, the applicable rate is 0%.
Customers wishing to start the tax reclaim process via Clearstream Banking should send an original version of the “Letter of request to Clearstream Banking for reclaim of withholding tax on Singaporean Securities” (attached below) duly completed and signed to Clearstream Banking.
Upon receipt of the request, Clearstream Banking will investigate the following details with its depository:
- Availability of a tax reclaim service for the particular event;
- Certification requirements for the particular beneficial owner; and
- Statutory deadline and Clearstream Banking deadline to receive the original documentation.
Upon receipt of the above information from its depository, Clearstream Banking will relay these details to its customers via SWIFT notification.
Deadline for receipt of documents
Clearstream Banking’s deadline to receive the original documents for a tax reclaim application is, at the latest, four months before the applicable market statutory deadline. Any reclaim received after this deadline will be rejected by Clearstream Banking.
Customers are reminded that each tax reclaim request will be treated on a case by case basis. Although Clearstream Banking will help its customers to mitigate rejections of the documents, neither Clearstream Banking nor the agent accepts responsibility for the acceptance or non-acceptance of the reclaim by the tax authorities of the respective country. It remains the customer’s responsibility to determine any entitlement to a refund of tax withheld, to complete the required forms correctly and to calculate the amount due.
The Market Taxation Guide - Singapore will be updated in due course.
For further information, please contact the Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or your Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking Frankfurt (CBF) customers using CreationOnline), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.